Mail-Well Announces 1Q Results: Loses $21.6 million
Press release from the issuing company
ENGLEWOOD, Colo., April 19 -- Mail-Well, Inc., announced today the results for the quarter ended March 31, 2002. Pro forma results for continuing operations before restructuring and other charges were $0.03 per share on sales of $392 million during the first quarter compared to $0.09 per share on sales of $433 million for the same period the previous year. The corresponding results for the "New" Mail-Well, which exclude the results of assets held for sale, were $0.02 per share on $365 million of sales for the first quarter compared to $0.06 per share on $411 million of sales for the same period last year. Including restructuring and other charges, continuing operations lost $8.3 million in the quarter, or $0.17 per share.
As part of Mail-Well's previously announced consolidation of certain Envelope plants and other restructuring programs, a charge of $13.6 million before taxes was taken during the quarter. Also during the quarter, a review of the expected net proceeds from dispositions, which are still in the $300 million range (including the proceeds from Curtis 1000), required the recognition of an additional charge which brought the loss from discontinued operations to $8.5 million for the quarter. During the quarter, Mail-Well completed a very successful issuance of $350 million of senior notes due 2012 with a 9 5/8% coupon. Part of the proceeds were used to pay down existing bank debt, which required the write off of deferred financing fees which gave rise to an extraordinary loss of $4.8 million net of taxes. As a result, the Company lost $21.6 million during the quarter or $0.45 per share.
Paul Reilly, Chairman, President and CEO, stated, "We have yet to see a turnaround in our markets. As a matter of fact, they were down in the first quarter 2002 compared to the fourth quarter of 2001. Within an environment of very soft sales, our cost cutting measures and our strategic initiatives are continuing to be effective. However, sales will need to improve from the first quarter levels for us to achieve our total year forecasts of $145 million of EBITDA. At current running rates, our full year forecast EBITDA would be approximatively $130 million for "New" Mail-Well."
Reilly continued, "during the quarter, we announced the closing of the sale of Curtis 1000. The process for the sale of the Label and Printed Office Products segments and other non-core assets is proceeding, and we expect to complete further sales during the second quarter. In the first quarter, our Label and Printed Office Products businesses have continued to operate well and generate results in accordance with expectations."
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